Landlords can thrive financially with the right set of skills and desires, but remember, nobody ever said being a landlord is the easiest vocation. And being a multi-tenant landlord can be challenge multiplied unless you know what you’re taking on. You must be willing to work smart, think ahead, and be prepared for the unexpected.
Obviously owning assets that produce income is a smart idea. Rental property is a solid way to do this if you know how to manage it. It also helps enormously if you’re a people-person, willing to invest your time, listening skills, and effort into keeping many people comfortable and content.
As for earning potential, if you want to earn a modestly comfortable salary of $50,000, you’ll need to have a profit of more than $4,000 each month. That can be stressful unless you have a plan. Give some thought to it and ask yourself a few questions to see if your answers match up to your goals.
Are you a Do-It-Yourself person?
If doing light work around the house appeals to you, being a landlord may be a good fit for you. By doing yardwork, light construction and plumbing yourself, you will save money on your rentals.
Do know reliable contractors?
As your rental business grows, you will need to call on contractors from time to time. These should be trusted, reliable people with whom you can build long lasting relationships. It’s also helpful to have connections in real estate as you develop the potential to expand.
Is 24/7 responsibility something you can handle?
If you’re fortunate enough to hire a reliable property management company to help, you’re in luck. Otherwise, be prepared for calls in the wee hours of morning or night. It goes with the job.
Do you enjoy people and their challenges?
Tenants can be difficult, but they do have legal rights. Screening is your best option to find great tenants. If you have a basic instinct about people and feel comfortable dealing with strangers, that’s a plus. There will be those who challenge you, regardless, so be prepared.
Will your rental rates cover your expenses?
Monthly rental properties can be very competitive depending on your location. If you’re competing in an area where investors own their properties without a mortgage and you have a mortgage, you will have less pricing flexibility. Just be sure to charge enough rent to cover your expenses and still take home a profit.
What’s your ideal balance of work and profit?
In the beginning, your tireless efforts may seem to pay off. But it doesn’t get easier as you grow, instead it often gets more challenging. Deciding how and when to work with a property management partner becomes a critical part of your process. If you prioritize reliability and proven track record, you’ll see the value of working with Cousin James Management.